California cracks down on dispensaries that evade taxes

California’s Board of Equalization (BOE) chairman is setting his sights on medical marijuana dispensaries that don’t pay their taxes.

BOE Jerome E. Horton has announced his support for a Cannabis Tax Enforcement “Eliot Ness” Plan, which would force cannabis sellers to pay their fair share of state taxes, reports Westside Today.

An important part of Horton’s plan is the Cannabis Tax Amnesty Act authored by Assemblyman Mike Gipson, which hopes to encourage illegitimate businesses to come clean and begin complying with state rules and regulations without receiving punishment.

“Because of the illegal aspect of cannabis sales and their potential to fund illegal activities in our communities, it is important that we distinguish between the responsible and irresponsible growers, distributors, vendors and consumers, and enforce the law to its fullest extent for those who choose to violate existing law,” said Chairman Horton in a statement. “The Cannabis Tax Amnesty Act is an opportunity for those not in compliance to bring themselves out of the shadows of the underground economy and in line with existing law.”

The BOE has found that a whopping 28 percent of cannabis dispensaries in Los Angeles alone were operating without a seller’s permit.

“Amnesty programs have proven to be helpful in reducing crime, increasing compliance, and leveling the playing field for legitimate operators,” stated Assemblyman Gipson. “If passed, cannabis operators will have two options: comply with the law or risk imprisonment, as gangster Al Capone did for tax evasion.”

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